The agreement removes tariffs on 57% of New Zealand exports immediately, with further cuts set to widen access to India’s vast consumer market.
New Zealand’s free trade agreement with India has come into force, giving exporters in sectors from farming to forestry a clearer route into one of the world’s largest consumer markets. The deal, which took effect on 20 October 2026, removes tariffs on 57% of New Zealand exports to India from day one and is designed to lift that share to 82% over time, according to New Zealand government releases.
Prime Minister Christopher Luxon said the pact would help Kiwi firms reach more than a billion additional customers through lower duties and broader market access. He also pointed to an early win, saying Auckland-founded technology company Valocity had landed the biggest deal in its history on the first day of the agreement. Luxon cast the deal as a boost not just for companies, but for employment, wages and local communities.
Trade and Investment Minister Todd McClay said the accord had been completed quickly after negotiations began in March 2025, describing the timetable as a record for India on a comprehensive trade deal. The Ministry of Foreign Affairs and Trade says the agreement will eventually eliminate or reduce tariffs on 95% of New Zealand exports to India, with immediate gains for products including sheep meat, wool, coal and much of the forestry sector. McClay said the next round of tariff cuts is due on 1 January 2027.
Wine producers are also expected to benefit. McClay said tariffs that had reached 150% on some wines would fall to 25% or 50% over a decade, alongside better access for exporters. The government has linked the deal to its wider aim of doubling export value over the next 10 years, arguing that more diversified markets are especially important as global economic conditions remain unsettled.
India is likewise looking to expand sales into New Zealand. India’s commerce and industry minister, Piyush Goyal, marked the start of the agreement by flagging off the first export of a JCB machine from India to New Zealand. According to Indian government statements, the agreement should open opportunities for manufacturers, farmers, artisans and small businesses, including micro, small and medium-sized enterprises and women entrepreneurs. It also includes an Agricultural Productivity Partnership to share technology, training and farming practices, with specific plans for kiwifruit, apples and honey, while excluding sensitive sectors such as dairy, sugar and edible oils from tariff concessions.
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